How does Nebraska tax remote workers?

You may fall into more than one category.

1. I lived in Nebraska.
• If you're considered a full-year or part-year resident of Nebraska, you will be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
• You may be able to claim a credit for taxes paid to another state if you're a full-year resident. A complete copy of the return filed with the other state must be attached to your Nebraska state tax return.
2. I worked remotely from Nebraska.
• Nebraska taxes income earned for personal services or activities performed while in Nebraska (even if you're a nonresident), or income earned from a Nebraska property (such as a rental property located in Nebraska). This includes remote work for an employer or clients based outside Nebraska if you were physically in the state while doing the work.
3. I lived in another state and worked remotely for an employer based in Nebraska, and I didn't work physically at any time in Nebraska.
• Non-residents must report total federal Adjusted Gross Income (AGI), but only pay tax on income earned from or connected to sources located in Nebraska.
• If your employer was based in Nebraska, they are required to withhold Nebraska taxes from your Nebraska wages as shown on your W-2. Even if you didn't live or physically work in Nebraska, you will owe Nebraska taxes on those wages and must file a nonresident return to pay underpaid taxes or claim a refund of any overpayment.
• If however, the employee chooses to work in another state (for employees convenience) state withholding tax is usually taken out for both states.

If your wages were minimal and you didn't do any other business in Nebraska, its possible you will be exempt from filing regardless of residency. See the Nebraska Schedule I instructions for more information.